Why CMBS Multifamily Performance is So Much Worse than Agency and Life Company Experience

At life insurance companies and government-sponsored enterprises (GSEs, Freddie Mac and Fannie Mae) credit performance has been very strong. In contrast, commercial mortgage-backed security (CMBS) collateral has performed poorly, with collateral performance at depositories (commercial banks and savings institutions) falling between the two.

We review the divergent performance, and make an effort to understand the drivers, focusing on the relationship between historical CMBS performance and the rest of the market. Read the report.

Note: This piece was featured in the CRE Finance World Summer 2011 edition.